Twitter becomes first social media platform to allow cannabis ads in U.S
Reuters
Published Feb 15, 2023 03:06PM ET
Updated Feb 16, 2023 01:12PM ET
(This Feb. 15 story has been corrected to clarify that Curaleaf reduced payroll by 10% not workforce in the last paragraph)
By Mrinalika Roy
(Reuters) - Twitter on Wednesday became the first social media platform to allow cannabis companies to market their brands and products in the United States.
The company had earlier only allowed advertising for hemp-derived CBD topical products, while other social media platforms including Facebook (NASDAQ:META), Instagram and TikTok follow a "no cannabis advertising policy" as pot remains illegal at the federal level.
However, more states in the United States are moving towards allowing the sale of recreational cannabis, with 21 already on board.
Twitter said it will permit cannabis companies to advertise, as long as they have proper license, pass through its approval process, only target jurisdictions where they are licensed to operate and most importantly, do not target people below 21 years.
"This is a pretty massive win for legal cannabis marketers," multistate cannabis and medical marijuana company Cresco Labs (OTC:CRLBF) said.
Most pot companies were quick to embrace the changes suggested by Twitter. Trulieve Cannabis (OTC:TCNNF) Corp already launched a multistate campaign on the platform on Wednesday.
"This change speaks to the growing acceptance of cannabis as a mainstream wellness category, and we are hopeful it will serve as a catalyst for other social media platforms to follow suit," said Kate Lynch of Curaleaf, the biggest cannabis company operating in the United States.
After enjoying a sales surge during the early stages of the pandemic, the U.S. cannabis industry showed signs of slowing in the face of regulatory and economic challenges, including falling prices and an illicit market poaching its customers.
Curaleaf recently reduced its payroll by 10%, which equated to less than 4% of its workforce, and exited the majority of its operations in three U.S. states.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.